Meeting Tesla's Challenge

Author | Wang Lei, Liu Yajie | Editor | Qin Zhangyong

The all-new Model Y has arrived, bringing a fresh and dynamic presence to the market.

Early this morning, Tesla unveiled its refreshed Model Y, with a pre-sale price of RMB 263,500 for the rear-wheel-drive version and RMB 303,500 for the long-range all-wheel-drive first edition. For reference, the current domestic Model Y's price range is RMB 249,900-354,900.

Notably, China is the first market globally to receive the refreshed Model Y. Tesla has also introduced a special first edition model, featuring unique identifiers on the rear, doors, and other areas. This first edition will be available for a limited time, until February 28.

As the reigning champion in the pure electric SUV segment, the new Model Y immediately garnered significant attention on social media. Tesla even published an article titled "Refreshed Model Y: Bring it On for the Comparison."

This sparked numerous responses. Lei Jun retweeted the post with a simple "Alright," indicating his interest.

Other automakers have also responded, such as LEAD CEO Ai Tiecheng, who stated, "Comparison is LEAD L60's strength," and AVATR, which simply said, "Let's compare."

As of press time, automakers including Lei Jun, Yu Chengdong, as well as Zeekr, AVATR, and Lynk & Co have all risen to Tesla's challenge for comparison.

Last year, new players including XPeng, Zeekr, NIO, and LEAD launched new vehicles to compete with the Model Y, but Tesla remained silent. By choosing China as the first market for the new Model Y, it seems Tesla is ready to go head-to-head with domestic automakers.

01 Upgrades: Bigger TV and Softer Sofa

After six years without a major refresh, Tesla has introduced significant changes.

The refreshed Model Y differs markedly from the current model, incorporating design elements from the Cybertruck and Cybercab. The front end has been flattened, giving it a more rugged appearance.

The most notable change is the split headlight design, with headlights still arranged horizontally and a central through-type daytime running light strip. The front bumper also features air inlets on both sides.

The front bumper and side mirrors have been redesigned with new lines that can "cut through" the airflow. Combined with the new wheel hub design and rear diffuser, the vehicle's drag coefficient has been optimized to 0.22.

At the rear, the new Model Y retains the overall profile of the current model, with a small ducktail spoiler and through-type taillights. The rear bumper is black, and the taillights feature the brand's English logo in the center. The rear also boasts the world's first diffuse reflection taillights, which are highly recognizable.

Additionally, the vehicle now comes in a new Ice Blue paint color.

The refreshed Model Y still features hidden door handles on the sides, and the door handles and rims have been blackened like the current model. There are no changes in dimensions, with the new Model Y measuring 4797/1920/1624mm in length, width, and height, respectively, and a wheelbase of 2890mm. Except for a slight increase in length, other dimensions remain the same.

Official information indicates that the new model's 0-100km/h acceleration has been improved to as fast as 4.3 seconds, with a maximum range of up to 719km (CLTC estimate) on a single charge.

Compared to the old model, the range has increased by over 30km, and the energy consumption has been reduced to a minimum of 11.9Wh/km (CLTC conditions), which is even lower than that of most sedans.

In terms of the chassis, the refreshed Model Y continues to use a front double wishbone and rear multi-link suspension setup. The suspension system has been newly tuned, improving the vibration filtering effect on rough roads by 51%. This achieves a driving experience similar to that of the Model 3, a sports sedan, while also greatly enhancing ride comfort.

Inside the cabin, the refreshed Model Y is moving closer to the concept of "home." The vehicle now features ambient lighting and ventilated front seats. Following the trend set by many domestic automakers, an 8-inch control screen has been added to the rear seats.

Building on the 30mm increase in rear seat length of the original Model Y, the refreshed model adds an additional 15mm and comes with wider 17mm headrests. The newly upgraded rear electric adjustable seats can be adjusted with a side button for quick "one-touch adjustment."

Based on the dual-layer acoustic glass on the front and rear side windows, the vehicle's sealing strips, sound insulation materials, etc., have also been optimized, reducing road noise by 22% and wind noise by 20%. Additionally, a new panoramic glass roof with a silver-coated layer has been added, providing better sun protection and heat insulation without the need for a sunshade.

Storage space has also been improved. The refreshed Model Y now has a 117L front trunk and a new independent drainage hole. With the rear seats folded down, the front and rear storage space can exceed 2130L.

In terms of intelligence, the vehicle comes standard with AI 4 autopilot hardware, supports OTA remote software updates, and is equipped with 8 cameras (including a front bumper camera). It also adds a blind spot monitoring function.

02 Will a 7-Seater Version Follow?

The refreshed Model Y not only sees upgrades in appearance, configuration, and hardware but also in price.

Currently, the official guide prices for the existing Model Y are RMB 249,900 and RMB 290,900, respectively. The starting price of the refreshed Model Y has been increased by RMB 13,600 compared to the current model.

While the price difference may seem small, Tesla initiated a promotional campaign at the end of 2024 to boost sales, effectively reducing prices.

Currently, the final payments for the existing Model Y rear-wheel-drive and long-range all-wheel-drive versions can be reduced by RMB 10,000, bringing the sale price to a global record low of RMB 239,900. Combined with Tesla's ongoing 5-year interest-free policy, the actual price can be even lower.

After the price increase and decrease, the price gap between the two has widened to at least RMB 23,600. From this perspective, the starting price of RMB 263,500 for Tesla's new Model Y does not offer much of an advantage in the domestic market.

Of course, the starting price of RMB 263,500 is for the first edition of the refreshed Model Y, which includes additional features such as a first edition badge, a tailgate emblem, premium fabric carpet mats, and pure black suede-like trim.

In other words, the price of the first edition cannot be measured by conventional official prices, which means that the official price of the refreshed Tesla Model Y is likely to drop further.

This is a common tactic used by Tesla. When the refreshed Model 3 was first offered for pre-sale, its starting price was RMB 28,000 higher than the old model, but the price subsequently decreased. Those who waited were rewarded.

Even so, compared to domestic competitors, the refreshed Model Y still lacks cost-effectiveness. Models led by IQI R7 and LEAD L60, while not comprehensively surpassing the Model Y in terms of product capabilities, can compete head-to-head with it in terms of configuration and price.

The Tesla Model Y also has its advantages, namely its strong brand appeal. Despite being encircled by six automakers, Tesla's sales remain robust.

According to data released by Tesla, the company delivered 1.789 million vehicles globally in 2024, with the Model 3/Y accounting for the vast majority at 1.7 million vehicles. In the Chinese market, sales exceeded 657,000 vehicles, an increase of 8.8% year-on-year, setting a new record. Among them, sales of the Model Y in the Chinese market exceeded 480,000 vehicles, ranking first in the overall vehicle sales chart.

From this perspective, Tesla's refresh of the Model Y was well-timed. Since its first delivery in March 2020, the Model Y has not undergone a major refresh in five years. Especially as domestic automakers have launched new models targeting the Model Y, and even Xiaomi's YU7 will challenge Tesla after its launch.

With this refresh, the Model Y's product capabilities have received another boost. Although prices have increased, many consumers hold the mindset of "buy early, enjoy early; buy late, get discounts." The days of automakers encircling "Guangmingding" will be even tougher.

Currently, both the Model 3 and Model Y, Tesla's best-selling models, have completed their refreshes. Additionally, the affordable model mentioned by Musk last year is expected to arrive in 2025, which is seen as a major weapon to push Tesla's sales to new heights.

It is worth mentioning that with the refreshed Model Y, Tesla seems to have hinted at the possibility of a "7-seater" version. In the vehicle configuration description, Tesla specifically notes the interior of the "5-seater version," which was not previously mentioned, implying the existence of other versions.